Do You Know the Cost of a Baby?
Have you seen these statistics?
A middle-income family who had a baby in 2008 will spend about $221,190 to raise the baby through childhood, adolescence, and to her 18th birthday. In fact, it will cost $291,570 when you adjust for expected inflation, the U.S. Department of Agriculture (USDA) estimates. The costs include food, shelter, and other necessities.
The report puts the average annual cost for a child these days in two-parent family between $11,610 and $13,480, depending on age. Figures in the report, which the USDA has issued annually since 1960, are used to set child-support and foster care payments.
Families that earn less than $56,000 a year will spend about $160,000 through the high school years. Higher income families tend to spend more. Housing costs are the biggest expense, averaging $69,660 or 32 percent of the total cost over 17 years. Food and child care or education each averaged 16 percent of the total expenditure.
College educations are not included in the figures. The USDA plans to update its online calculator of the cost of raising a child, which can be individualized with factors such as being a single parent or where you live.
Are you surprised by these statistics? Do you think these numbers impact families and how many children they decide to have?
